Brussels – In 2025, GDP grew by 1.4 per cent in the euro area and 1.5 per cent in the European Union, following +0.9 per cent and +1.1 per cent, respectively, in 2024. Looking at individual countries, GDP increased in all Member States in 2025. The highest growth rates were recorded in Ireland (+12.3 per cent), followed by Malta (+4.0 per cent), and Cyprus (+3.8 per cent). The smallest increases were observed in Germany and Finland, both with +0.2 per cent, Hungary with +0.4 per cent, and Italy, where growth stood at +0.5 per cent compared to 2024. This is according to data released by Eurostat, the statistical office of the European Union.
In the fourth quarter of 2025, the gross domestic product (GDP) of the euro area rose by 0.2 per cent compared to the previous quarter and by 1.2 per cent on an annual basis, a downward revision from the preliminary estimate, which indicated an increase of 0.3 per cent on a quarterly basis and 1.3 per cent on an annual basis. The results are also slightly below analysts’ average expectations. According to the Statistical Office, in the fourth quarter of 2025, the European Union’s GDP also increased by 0.2 per cent compared to the previous quarter and by 1.4 per cent compared to the same period in 2024.
From October to December 2025, Malta recorded the largest quarterly increase in GDP (+2.1 per cent), followed by Lithuania (+1.7 per cent), and Croatia and Cyprus (both +1.4 per cent). Some countries, however, recorded a contraction: Ireland (-3.8 per cent), Romania (-1.9 per cent), Estonia, and Luxembourg (both -0.1 per cent). Italy recorded an increase of 0.3 per cent compared to the previous quarter. In international comparison, the US economy grew by 0.4 per cent in the same period compared to the previous quarter, after +1.1 per cent in the third quarter. On an annual basis, US GDP increased by 2.2 per cent.
As regards the components of growth in the last quarter of 2025, final consumption expenditure by households increased by 0.4 per cent in the euro area and by 0.5 per cent in the EU, while public expenditure increased by 0.5 per cent and 0.7 per cent, respectively. Gross fixed capital formation increased by 0.6 per cent in both areas. In contrast, exports fell by 0.4 per cent in the euro area and by 0.3 per cent in the EU, while imports fell by 0.2 per cent in the euro area and remained stable in the EU. In terms of its contribution to GDP growth, household consumption contributed 0.2 percentage points in the euro area and 0.3 percentage points in the EU. Public expenditure and investment also made positive contributions, while changes in inventories and the balance between exports and imports had a negative impact.
On the labour market front, in the fourth quarter of 2025, the number of people in employment rose by 0.2 per cent in both the euro area and the EU compared with the previous quarter. On an annual basis, employment grew by 0.7 per cent in the euro area and 0.6 per cent in the EU. For 2025 as a whole, employment rose by 0.7 per cent in the euro area and 0.5 per cent in the EU. Hours worked increased by 0.6 per cent in the euro area and 0.5 per cent in the EU compared with the previous quarter, while on an annual basis they were up 0.9 per cent and 0.7 per cent, respectively. The number of people in employment in the last months of 2025 in the EU was around 221.1 million, of which 172.6 million were in the euro area alone.
English version by the Translation Service of Withub
